I am attempting to set up an "interactive clip" tool that will allow the user to draw clip features on the fly and use those as the clip features in the Clip tool in the analysis toolbox. I have added the Clip tool to ModelBuilder and exposed the clip features as a model parameter. I also changed the type to a FeatureSet, which I understand is supposed to allow the user to interactively enter the features when the tool is opened within ArcMap.
However, when I open the tool in ArcMap, the Clip Features input does not allow the interactive drawing of features, but rather only allows the user to select an already existing feature class. ArcGIS help and the above link indicate that under this setup the FeatureSet should by default point to an in_memory location where the user can temporarily draw features.
Here's how I have it set up in ModelBuilder:
Here's the resulting tool interface:
What am I missing here? Any ideas why this is not working as expected?